Analyst More Optimistic About Wheat Than Other Crops

Wheat prices haven’t been strong for several months, which is why wheat acreage in the U.S. is expected to be at historic lows for the second year in a row.

Angie Setzer, vice president of Grain for Citizens LLC., thinks there’s some potential in 2018 for wheat prices to see some strength, and gives her optimism.

World hiccups in production, like in Australia, could be one reason for a possible pop in price. Weather could also play an important role, like the La Niña pattern.

“The reality is the cash market has started to really firm,” she said. “We’ll start to see some of those spreads come in—we’re seeing some changes in the overall fundamentals of what the farmers are getting.”

Comments

Leave a Comment

Name *

Email *

City *

State *

Comment *

Please enter text you see below:

ZorconWestern, NE12/9/2017 12:31 PM

Oh? That's why the basis has widened in my area? The cash market is firming up? Australia doesn't have much of a crop this year from what I'm reading and yet the price is in the tank. The gorilla on the world market is Russia now. When Russia has a massive crop failure or Putin gets overthrown, then the American wheat farmer may stand a chance of making a profit. What really needs to happen is a massive rise in interest rates to get the retirement money out of the markets and back into CD's and money market accounts. Or, we need another stock market crash! That in turn reduces the amount of short positions in the market, reduces volatility and then gives the cash market a chance to recover. Weather just doesn't play as much of a factor as it used to. Until we have absolutely no wheat inventory in this country, will the trade wake up and think wow, we should buy to increase acres!